LightSquared's Bankruptcy Bills Hit $1.3B

May 19 2014 | 11:25am ET

Harbinger Capital Partners' wireless internet venture doesn't have an approved restructuring plan, but it does have expenses, which continue to pile up as the company awaits an exit from bankruptcy and approval of its planned network.

LightSquared, which has been in bankruptcy protection for two years, spent $55.4 million in April, it said in a court filing. Most of the money—$36.9 million—went to debt payments, with another $4.6 million to lawyers and others working on the bankruptcy case and $1.3 million to pay its staff.

All told, LightSquared has spent $1.3 billion since filing for bankruptcy.

Earlier this month, U.S. Bankruptcy Judge Shelley Chapman rejected LightSquared's restructuring plan, which is backed by Fortress Investment Group. She ruled that the proposal was unfair to LightSquared's largest creditor, Dish Network Chairman Charles Ergen, while also finding that Ergen had improperly purchased the debt and should have some of his claims subordinated.

Chapman ordered both side to sit down and come up with a new plan by May 27, threatening to impose mediation if they fail to reach accord. The judge cited the continuing costs of the case for the urgency.

LightSquared is still awaiting federal approval to deploy its wireless network. The Federal Communications Commission rejected its original plan, citing interference concerns with global positioning systems.


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.